Exercise 18-16 (Part Level Submission) Glacial Company estimates that variable c

Question

Exercise 18-16 (Part Level Submission) Glacial Company estimates that variable costs will be 54.7% of sales, and fixed costs will total $704,000. The selling price of the product is $4.10. (b) Your answer is incorrect. Try again. Compute the break-even point in (1) units and (2) dollars. (Round intermediate calculation to 1 decimal place, e.g. 52.8 and final answers to 0 decimal places, e.g. 5,275.)

(1) Break-even sales units

(2) Break-even sales $

Ive gotten it wrong x2 can someone help

this is my work for tc=4.10-(.547*4.10)=1.86

break even sales i get 704000/1.86=378495--which is wrong

break even in $ 378495*4.10=1,551,830 which is also wrong

Explanation / Answer

Contribution margin per unit = (100-54.7%)*4.1 = 1.9 per unit

Break even sales units = Fixed cost/contribution margin per unit

= 704000/1.9

Break even sales unit = 370526 units

Break even sales = 370526*4.1 = 1519157

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.